Bourses give ‘prior nod’ for change in Reliance Securities’ ownership

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Mumbai: Indian stock and commodity exchanges – the NSE, BSE, MCX and NCDEX – have granted ‘prior approval’ to Reliance Securities, originally promoted by Anil Ambani, for the proposed change in its shareholding.

The brokerage had sought approvals from the bourses for transferring shares owned by existing promoter Reliance Capital to Aasia Enterprises LLP – a Hinduja Group entity. The approvals come in the wake of a successful bid for Reliance Capital by Hinduja group entity IndusInd International Holdings (IIHL), a promoter entity of IndusInd Bank.

Once the transaction is complete, Aasia Enterprises will own about 210 million shares in Reliance Securities, representing close to 100% stake.

IIHL emerged as the successful resolution applicant to acquire the beleaguered financial services company Reliance Capital under the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). IIHL’s resolution plan for Reliance Capital included Reliance Securities, a brokerage entity that offers stockbroking services and distribution of financial products.

Aasia Enterprises LLP declined to comment. “As a matter of policy, we do not comment on regulatory developments,” a spokesperson said.

IIHL’s resolution plan for Reliance Capital involves an upfront cash amount of ₹9,650 crore. Along with Reliance Securities, it also encompasses Reliance Capital’s group entities providing life, general and health insurance, as well as the asset reconstruction business.The CIRP against Reliance Capital was initiated in November 2019. Subsequently, the IIHL bid received support from creditors, with a 99.6% majority voting in its favour.In February, the National Company Law Tribunal (NCLT) approved the resolution plan.

Reliance Capital had a secured debt of ₹16,000 crore. As per the reports, the lenders would receive ₹10,000 crore from IIHL, including ₹9,661 crore of upfront cash.

RBI appointed Nageswara Rao Y as the company’s administrator as per the IBC, and the Mumbai bench of the National Company Law Tribunal approved the resolution plan on February 27, 2024.

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